Middle Market Digest: Early This Week in Florida

Early this week in Florida saw some interesting numbers come out of Palm Beach County's retail market.  Meanwhile, Miller Construction Company is on a commercial real estate completion role.
There's over 4.2 million square feet of vacant shop and anchor space in Palm Beach County. That's 37 big boxes and 31 junior boxes. (Source: Avison Young)

There are 75 Publix centers (9.3 million square feet) that are 91.6% occupied with almost 790,000 square feet of vacant shop and anchor space. (Source: Avison Young)

NEWS & NOTABLES

BOCA RATON, FL—Modernizing Medicine plans to expand operations in the historic Boca Raton Innovation Center (BRIC) in Palm Beach County and will add a total of 838 jobs by 2022. Modernizing Medicine is a Florida based company that specializes in healthcare information technology. In addition to the more than 800 new jobs being created, Modernizing Medicine anticipates making a capital investment of more than $15 million in the Boca Raton community. Headquartered in Boca Raton, Modernizing Medicine was founded in 2010 by CEO Daniel Cane and chief medical and strategy officer Dr. Michael Sherling and has quickly grown to more than 550 employees. The company empowers physicians with suites of mobile, specialty-specific solutions designed to transform how healthcare information is created, consumed and utilized to increase efficiency and improve outcomes.

DEAL TRACKER

MIAMI—In a competitive sale process that generated more than 70 all cash offers in just 35 days, Rhenium Capital, a South Florida-based loan sale advisor, closed three non-performing loan sales on behalf of an institutional special-servicer.  “These are truly interesting times for the NPL market,” says Rhenium cofounder Andre Cuadrado. “Cap rates are compressing and deal volume is slowing in the traditional CRE market. Investors are yield-starved, while we are still seeing things like pre-2009 NPLs on note holder's books.  We feel that our success here is a huge neon sign that says, 'The time to sell your NPLs is now.'” The three notes which were individually sold were secured by retail assets located in Florida, Washington and Idaho, and had a combined face value of $2.7 million.

ATLANTA—Hunter Hotel Advisors represented a special servicer in the sale of the TownePlace Suites Tallahassee North Capital Circle, Florida for an undisclosed amount. The hotel was purchased below replacement cost by a boutique multidisciplinary real estate firm that was interested in expanding their already strong presence in the Tallahassee market. The 93-suite Marriott was built in 1998 and fully renovated in 2013. Tim Osborne in Hunter's Atlanta office, Trey Scott in Hunter's Jacksonville office and Robert Taylor in Hunter's Miami office worked together on the transaction.

OAKLAND PARK, FL—Marcus & Millichap brokered the sale of The Oasis, a 141-unit apartment property located in Oakland Park, for $13.5 million. “The Oasis was acquired approximately 12 months ago for $10 million,” says Derek R. Gibbs, first vice president investments, in Marcus & Millichap's Fort Lauderdale office. “The sellers added value to the net operating income through excellent management and interior/exterior cosmetic repair.” Daniel J. Cunningham, first vice president investments, Gibbs and Evan Richardson, associate, all in Marcus & Millichap's Fort Lauderdale office, represented the seller, a limited liability company, and procured the buyer, an individual/personal trust. The Oasis is located at 3870 North Andrews Avenue in Oakland Park. The property was built between 1970 and 1976, and consists of seven buildings on five individual parcels.

PALM BEACH, FL—CBRE Group has been selected by the new owner of Golden Bear Plaza, an affiliate of Alliance Partners HSP, to lead management of the 245,673-square-foot property. The class A, three-tower office complex is located at 11760, 11770 and 11780 U.S. Highway 1, Palm Beach Gardens, Florida. Patricia Nooney, senior managing director of CBRE Asset Services will provide executive oversight to the property management team, alongside associate director Bill Davis. Joining CBRE is Michael Bowden, senior real estate manager who will continue to lead the onsite operations. Golden Bear Plaza was developed between 1985 and 1990 in partnership with Jack Nicklaus' company, and is now the premier multi-tenant office building on the Prestige Coast, with an occupancy of 83%, it is home to approximately 40 tenants in various industries, including telecom, legal and financial services, marketing and development and construction.

BUILDING BLOCKS

MIAMI—Miller Construction Company completed its third project for The Graham Companies, a 51,200-square-foot building in Miami Lakes that will be the new South Florida campus of Sistema Universitario Ana G. Méndez. As general contractor for the $10 million built-to-suit to lease project, Miller fast-tracked the structural shell and interior to ensure delivery for the University's fall semester. After topping off the two-story building, Miller's crews worked simultaneously on shell completion and interior build-out to accelerate construction and limit the client's costs.

Early this week in Florida saw some interesting numbers come out of Palm Beach County's retail market.  Meanwhile, Miller Construction Company is on a commercial real estate completion role.
There's over 4.2 million square feet of vacant shop and anchor space in Palm Beach County. That's 37 big boxes and 31 junior boxes. (Source: Avison Young)

There are 75 Publix centers (9.3 million square feet) that are 91.6% occupied with almost 790,000 square feet of vacant shop and anchor space. (Source: Avison Young)

NEWS & NOTABLES

BOCA RATON, FL—Modernizing Medicine plans to expand operations in the historic Boca Raton Innovation Center (BRIC) in Palm Beach County and will add a total of 838 jobs by 2022. Modernizing Medicine is a Florida based company that specializes in healthcare information technology. In addition to the more than 800 new jobs being created, Modernizing Medicine anticipates making a capital investment of more than $15 million in the Boca Raton community. Headquartered in Boca Raton, Modernizing Medicine was founded in 2010 by CEO Daniel Cane and chief medical and strategy officer Dr. Michael Sherling and has quickly grown to more than 550 employees. The company empowers physicians with suites of mobile, specialty-specific solutions designed to transform how healthcare information is created, consumed and utilized to increase efficiency and improve outcomes.

DEAL TRACKER

MIAMI—In a competitive sale process that generated more than 70 all cash offers in just 35 days, Rhenium Capital, a South Florida-based loan sale advisor, closed three non-performing loan sales on behalf of an institutional special-servicer.  “These are truly interesting times for the NPL market,” says Rhenium cofounder Andre Cuadrado. “Cap rates are compressing and deal volume is slowing in the traditional CRE market. Investors are yield-starved, while we are still seeing things like pre-2009 NPLs on note holder's books.  We feel that our success here is a huge neon sign that says, 'The time to sell your NPLs is now.'” The three notes which were individually sold were secured by retail assets located in Florida, Washington and Idaho, and had a combined face value of $2.7 million.

ATLANTA—Hunter Hotel Advisors represented a special servicer in the sale of the TownePlace Suites Tallahassee North Capital Circle, Florida for an undisclosed amount. The hotel was purchased below replacement cost by a boutique multidisciplinary real estate firm that was interested in expanding their already strong presence in the Tallahassee market. The 93-suite Marriott was built in 1998 and fully renovated in 2013. Tim Osborne in Hunter's Atlanta office, Trey Scott in Hunter's Jacksonville office and Robert Taylor in Hunter's Miami office worked together on the transaction.

OAKLAND PARK, FL—Marcus & Millichap brokered the sale of The Oasis, a 141-unit apartment property located in Oakland Park, for $13.5 million. “The Oasis was acquired approximately 12 months ago for $10 million,” says Derek R. Gibbs, first vice president investments, in Marcus & Millichap's Fort Lauderdale office. “The sellers added value to the net operating income through excellent management and interior/exterior cosmetic repair.” Daniel J. Cunningham, first vice president investments, Gibbs and Evan Richardson, associate, all in Marcus & Millichap's Fort Lauderdale office, represented the seller, a limited liability company, and procured the buyer, an individual/personal trust. The Oasis is located at 3870 North Andrews Avenue in Oakland Park. The property was built between 1970 and 1976, and consists of seven buildings on five individual parcels.

PALM BEACH, FL—CBRE Group has been selected by the new owner of Golden Bear Plaza, an affiliate of Alliance Partners HSP, to lead management of the 245,673-square-foot property. The class A, three-tower office complex is located at 11760, 11770 and 11780 U.S. Highway 1, Palm Beach Gardens, Florida. Patricia Nooney, senior managing director of CBRE Asset Services will provide executive oversight to the property management team, alongside associate director Bill Davis. Joining CBRE is Michael Bowden, senior real estate manager who will continue to lead the onsite operations. Golden Bear Plaza was developed between 1985 and 1990 in partnership with Jack Nicklaus' company, and is now the premier multi-tenant office building on the Prestige Coast, with an occupancy of 83%, it is home to approximately 40 tenants in various industries, including telecom, legal and financial services, marketing and development and construction.

BUILDING BLOCKS

MIAMI—Miller Construction Company completed its third project for The Graham Companies, a 51,200-square-foot building in Miami Lakes that will be the new South Florida campus of Sistema Universitario Ana G. Méndez. As general contractor for the $10 million built-to-suit to lease project, Miller fast-tracked the structural shell and interior to ensure delivery for the University's fall semester. After topping off the two-story building, Miller's crews worked simultaneously on shell completion and interior build-out to accelerate construction and limit the client's costs.